Short Sale or Foreclosure, which is worse and how does it affect your credit score?  Can it be fixed and how soon can I get into a new home if I have a Short Sale or Foreclosure on my credit report?

All these are good questions and can make or break a loan application for a new home or even personal loan or credit cards.

Many people have opted to do a Short Sale on their home when they could not make payments anymore because of medical reasons, loss of a job, cutbacks, etc. Whatever the reason, instead of just walking away and having a foreclosure on their record, they opted to take the time and expense to do a short sale. Even at a reduced rate, the bank has authorized the short sale and should report the negative on the credit report as a short sale and not a foreclosure.

But, there is not listing for a short sale and the closest thing to it is a foreclosure.  The problem with a foreclosure on your credit report is that it looks bad… smells bad and is bad… it costs you a lot of points and most lenders will not lend to someone with a foreclosure on their credit report for 4 to 7 years. With a short sale, you could get into a new mortgage in a very short period of time.  It’s just not the same type of damage as a foreclosure. The problem is coding the short sale correctly. So, what can be done?

Vantage Credit Alliance using our attorney firm National Credit Federation can change the coding and remove the negative so that a person can get into a new mortgage without waiting the standard 4 to 7 years. It’s almost like magic and it saves the heartbreak of tens of thousands of families who had a bad time during the economic recession and now are back on their feet and want to get into a home again.

It’s called the Mortgage Maker and it has the power to change a foreclosure into a short sale within a few weeks and let people move on. It’s fast, affordable and solves a major problem for a lot of people looking to get into a home again.

The Credit Bureaus are so far doing nothing to change this problem in reporting and seem to not care about how it affects people who are damaged by this oversight. Perhaps putting some pressure on will speed up this correction but so far, it’s up to National Credit Federation to force the changes needed to change the coding.

If you have a foreclosure on your credit file that should be a short sale, call for a free consultation and let’s help you get your credit life back… call us at 801-769-9443

Lawrence M Law is a Regional Director for National Credit Federation and CEO of Vantage Credit Alliance – Attorney Assisted Credit Solutions dealing in Credit Repair, Debt Settlement, Credit Education, Business Credit & Funding and Family Banking Plans  Call 801-769-9443 or